A digital revolution in banking services could contribute more than £1bn annually to the UK economy, research has claimed.
Under the so-called “Open Banking” reforms, which came into force in the UK last month, customers are given the keys to their own financial data, enabling them to change providers in minutes online with a few clicks.
It also enables consumers to see all their money on one screen and access better budgeting tools.
The changes are being enforced on big banks by the Competition and Markets Authority, but six lenders – HSBC, Barclays, RBS, Santander, Nationwide and Bank of Ireland – all missed the Jan 13 deadline and were afforded more time to comply.
Lloyds, Allied Irish Bank and Danske were among those ready on time. A small number of transfers have since taken place under the new rules as lenders continue to test the new system, with a more comprehensive launch expected next month.
Despite the slow start, researchers at the Centre for Economics and Business Research (Cebr) believe the reforms will ultimately give UK GDP a £1bn lift and create 17,000 jobs.
The Cebr report, commissioned by review website Trustpilot, finds that greater transparency on customer credit risk is likely to reduce risk premiums and expand credit access.
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